Part 4/8:
For example, take the New York Giants and the New York Jets, both representing the same market area but acting as separate entities. If a TV station approaches the teams to negotiate broadcasting rights, each team is incentivized to offer a high bid. But instead, the league has a system where the NFL sells the TV rights for the entire league collectively—not individual teams—thus effectively creating a cartel. This means the league sets a unified price, often very high, for the broadcast rights, thereby limiting competition and keeping prices inflated.